Stocks open unchanged before Fed's rate decision

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Stocks open unchanged before Fed's rate decision

Published: 20 Sep. 2023, 09:57

Screens in Hana Bank's trading room in central Seoul show stock and foreign exchange markets close on Tuesday. [NEWS1]

Stocks opened flat Wednesday as investors maintained caution against the U.S. Federal Reserve's rate decision later in the week.

The benchmark Kospi Index lost 1.61 points, or 0.06 percent, to 2,557.60 in the first 15 minutes of trading.

All three U.S. stock indexes closed lower Tuesday on the eve of the Federal Reserve's interest rate announcement, which is expected to keep rates on hold.

Kospi closes lower Tuesday on tech, battery losses

But the market expects the U.S. central bank may deliver one more rate hike this year as higher energy costs may heat up inflation and curb economic growth.

In Seoul, big-cap stocks traded mixed.

Samsung Electronics gained 0.14 percent, while SK hynix lost 0.34 percent.

Posco Holdings dipped 0.17 percent, but Posco Future M climbed 1.64 percent, and Posco International jumped 2.27 percent.

Battery shares opened higher, with LG Energy Solution and Samsung SDI rising 0.3 percent and 0.18 percent, respectively.

Hyundai Motor advanced 1.05 percent, and Kia added 0.5 percent.

Bio shares were weak, with Samsung Biologics dropping 0.82 percent and Celltrion retreating 0.27 percent.

The local currency was trading at 1,327.8 won against the dollar at 9:15 a.m., up 0.7 won from Tuesday's close.

BY SOHN DONG-JOO, YONHAP [sohn.dongjoo@joongang.co.kr]